Business South August 2020

| 41 Volume 29 | Issue 4 businesssouth LTD Phone: 03 732 8716 Email: accounts@reeftoncraneandconstruction.co.nz www.reeftoncraneandconstruction.co.nz RCCL ARE PROUD TO BE ASSOC I ATED WI TH HEAPHY MI N I NG MINERALS & ENVIRONMENTAL HEALTH & SAFETY INSPECTION, VERIFICATION, TESTING & CERTIFICATION SERVICE & TECHNICAL ADVICE FOR ALL TYPES OF OPERATIONS Energy, Geochemistry, Environmental, Occupational Hygiene SCOPE OF SERVICES Hugh McMillan - General Manager Mineral & Environment, Health & Safety (EHS) Cell: +64 275 735 701 | Email: Hugh.mcmillan@sgs.com Caitlin Meredith - Business Development Executive Mineral & Environment, Health & Safety (EHS) Cell: +64 27 571 6507 Email: Caitlin.Meredith@sgs.com For a complete list of capabilities & product info please contact: “We have a good supply of electricity here, but it’s three times the price of coal. Even if every dairy factory and hothouse grower was able to convert to electricity tomorrow, what would Auckland run on?” MINING - WEST COAST » Heaphy Mining Coal producer questions zero carbon policy Heaphy Mining owns and operates the Berlin’s Creek Mine near Westport. Kelly Deeks R ecent carbon credit price inflation could be to the detriment of food security in New Zealand, according to Heaphy Mining manager Neal Clementson. He says in June, the carbon credit price shot through the roof overnight. “It’s heading up to $35 per unit which is going to impact the commercial hothouse vegetable growers and put the price of their energy right up. It’s totally unfair. “My coal is worth $100 per tonne and I’ve had to put $76 extra on top of for carbon credits. And to the best of my knowledge, that money is collected and it’s not even spent in New Zealand.” Heaphy Mining owns and opeates the Berlin’s Creek Mine near Westport. The opencast coal mine is located in the Inangahua coalfield and produces sub-bituminous thermal coal for local and industrial markets. Coal reserves in the area are estimated at about 6 million tonnes, and Neal says it’s a valuable resource for the country. “If the Government wants coal out, then it needs to provide a cost-effective energy alternative, especially in the South Island where we have no gas,” Neal says. He points to a recent NZ Institute of Economic Research (NZIER) report - commissioned by Toma- toes New Zealand - which said a $35 carbon price could contract the covered horticulture sector by more than half, and cost more than 1200 jobs. New Zealand would then have to import hothouse produce from Australia where there is no price on carbon. “We have a good supply of electricity here, but it’s three times the price of coal. “Even if every dairy factory and hothouse grower was able to convert to electricity tomorrow, what would Auckland run on?” He suggests that while climate change minister James Shaw wants New Zealand to be at the fore- front of zero carbon, he can’t change the weather by taxing people. “They’ve acknowledged the Zero Carbon bill that’s going to come in is going to cost NZ$30 bil- lion. There’s a big hole in the Titanic and not enough fingers to put in it.” Neal says ETS reform needs to come back to a realistic level, until we have recovered from Covid-19 or at least, spend the taxes collected in New Zealand. “It could be spent here on climate change mitigation, or even subsidising schools, hospitals, and aged care facilities that have no viable energy source. It’s so frustrating at the moment because there is so much going on behind the scenes that the consumer doesn’t see, then they complain that New Zealand produce is so expensive.” Neal is worried about his customers, many of whom are associated with food production, but also the schools and District Health Boards around New Zealand who require affordable energy costs to keep out of the red. “Quite a lot of my coal goes to Christchurch Hospital, so they are now looking at an extra bill for energy when most of the DHBs are already running in the red.”